Mr. Zimmerman: America First Mortgage Investments is an adjustable rate mortgage REIT that has 90% of its assets invested in triple A-adjustable rate mortgage'backed securities. We have a niche, a little different bent, than some companies in our peer group. We own a real estate portfolio consisting of approximately 1,450 apartment units. This portfolio is an offset to the risk parameters inherent in owning an adjustable rate mortgage'backed securities portfolio.
TWST: Now most REITs are primarily property owners, they don't own
securities.
Mr. Zimmerman: Most REITs are equity REITs but there are other types of
REITS in our industry, which are known as mortgage REITs.
TWST: Is there an advantage of doing what you're doing rather than just
outright owning properties?
Mr. Zimmerman: The portfolio we have constructed at MFA is quite liquid
and consists of approximately 90% triple A rated securities which are
guaranteed by either Fannie Mae, Freddie Mac or Ginnie Mae. The risk
profile we present as a mortgage REIT is far different from the risk
profile of equity REITs. However, please remember that we do have a
small real estate component represented by the 1,450 apartment units
which we discussed earlier.
Tickers included in this excerpt: MFA
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